JK Tyre registered a capacity utilisation of more than 85 per cent in Q3, as against 80 per cent overall during the first quarter.
As the road ahead looks positive, JK Tyre plans to invest around Rs 5 billion to increase its capacity. Around 60 per cent of the investment will be in the recently acquired Laksar-based Cavendish Industries. The balance will be spread over across its facilities. The company has 12 facilities -- nine in India and three in Mexico -- and produces around 32 million tyres a year.
The company has already undertaken around 12 per cent capacity expansion in the truck & bus radial (TBR) segment and is hoping to enhance output in the next five-six months to around 10,000 units a day from the current 9,000 units daily capacity across its three facilities.
JK Tyre is also working on increasing its presence in the two- and three-wheeler segment, which it entered in 2016-17. The company has already managed to grab around 9-10 per cent market share, while it claims around one-fourth share in the tyre industry and it is now looking to consolidate this and double it in 2018-19.
"Today, JK Tyre is among the top 20-22 tyre firms in the world, depending on the dollar. Even during challenging times, we have been able to maintain a robust compound annual growth rate of seven-eight per cent. Going forward, we have plans of growing our business to the tune of higher double digits across segments," said Bajoria.